Volatility

Schlindwein AssociatesInvesting, Market Observations

Recent stock market volatility has raised investor concerns, and understandably so. Reports on labor markets have indicated a slowing trend, bringing focus once again to the likelihood of a hoped-for “soft landing” ahead (lower inflation with no recession). At the same time, policy changes in Japan resulted in the unwinding of leverage positions and the largest one-day decline in the Japanese stock market since 1987. This disruption raised concerns over the prospects for other unforeseen risks mutating to market downside. A review of recent stock market volatility with some historical perspective can help provide context for market trends and investing ahead.

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